Bangladesh Bank on Sunday asked the country’s commercial banks not to concentrate their loans in a particular sector or a few corporate groups with a view to protecting the banks’ financial health.
The central bank also asked private commercial banks to allow jobseekers irrespective of someone’s academic subject and educational institution to participate in the banks’ recruitment tests.
The BB gave the directives at the quarterly bankers’ meeting held at the central bank headquarters in capital Dhaka.
The managing directors and chief executive officers of all banks were present in the meeting, while BB governor Fazle Kabir presided over it.
The Association of Bankers, Bangladesh chairman Anis A Khan told reporters after the meeting that the BB governor had asked them not to concentrate most of their loans in a particular sector and a few corporate groups.
‘He has also asked the banks to strengthen their recovery process of non-performing loans,’ Anis, also managing director of Mutual Trust Bank, said.
The BB also asked private commercial banks to allow jobseekers irrespective of someone’s academic subject and educational institution to participate in the banks’ recruitment tests, he said.
In general, the PCBs are now allowing graduates and post-graduates in five to seven subjects and from certain private universities along with public universities to take part in the tests.
A significant number of jobseekers who graduated in other subjects are now being deprived of participating in the recruitment tests despite having required academic qualifications for the job as the banks mention the names of the subjects and universities in their respective recruitment announcements.
Anis said the central bank also asked the banks to prepare a uniform hierarchy among the officials of the commercial banks.
The ABB will submit its opinions in the central bank in this regard, he said.
The PCBs are now following different job hierarchy systems to appoint and promote their officials in different posts, creating a haphazard situation in terms of evaluating the human resources in the country’s banking sector.
The central bank asked the banks to expand their digital banking as only 28 banks have so far introduced internet banking and nine banks have launched mobile app banking, Anis said.
BB deputy governor SK Sur Chowdhury told reporters after the meeting that the central bank had asked the banks not to disburse consumer credit aggressively as some banks disbursed significant amounts of such loans.
The country’s private sector credit increased significantly in July against the backdrop of disbursing the huge amount of consumer credit by the banks, he said.
The BB asked the banks to avoid the risky loan disbursement to tackle an increase in the defaulted loans further in the banking industry, he said.
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